McCoy Global (MCB) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 reached $19.9 million, up 23% year-over-year, driven by strong adoption of FMS and wellbore equipment deliveries.

• Net earnings rose 119% to $3.1 million compared to Q2 2023, with adjusted EBITDA at $4.7 million, or 24% of revenue.

• Significant progress on the Digital Technology Roadmap, including delivery of 26 FMS tools and successful smartCRT™ test rig trials.

• Accepted $3.7 million and $1.8 million in deep-water offshore contracts, marking the first offshore SaaS commitment for Virtual Thread-Rep™ technology.

• Declared a quarterly cash dividend of $0.02 per share, payable October 15, 2024.

Financial highlights

• Q2 2024 revenue: $19.9 million, up from $16.2 million in Q2 2023.

• Net earnings: $3.1 million (16% of revenue), up from $1.4 million (9% of revenue) in Q2 2023.

• Adjusted EBITDA: $4.7 million (24% of revenue), up from $2.9 million (18% of revenue) in Q2 2023.

• Gross profit margin increased to 34% from 33% year-over-year.

• Backlog at June 30, 2024: $22.3 million; book-to-bill ratio at 0.84, down from 1.01 in Q2 2023.

Outlook and guidance

• Anticipates future revenues to be increasingly driven by technology adoption and market share expansion, less reliant on drilling cycles.

• Expects quarter-to-quarter fluctuations in revenue and working capital due to order timing and customer shipments.

• Backlog supports a softer start and stronger finish to the second half of 2024.

• Robust fundamentals in international oil and gas markets, especially MENA, and strong positioning in deep-water offshore and TRS segments.